Mutual Fund Sahi hai ?
You definitely have seen this advertised on Television or any where.
This advertisement show that From Educational to Retirement , Having good amount of money with Mutual Fund is right. ( Mutual Fund sahi hai )
But , are you 100 % Aware with this ?
Well, In this article I am going to let know you some basic guide or information about Mutual Fund.
You will also able to know after reading this blog that what are the percentage of risk in investment via Mutual Fund.
It is The fund or you can say that it is managed by the experts that Collect money from you as invest and invest in Company in order to get well Return.
What is Mutual Fund ?
It is operated by Experts and professionals. Mutual Fund Take money from the people and invest that money in Equity, Debt, and others sources of Investment.
It is said that Mutual Fund also tell to Provide you good return with your investment money.
Now you may say that Stock market is also place where I can Invest My money then why Should I go for a mediator.
Many people get confused between Stock Market and MF.
They often get in long think 🤔 to where to invest.
Then you should definitely Consider this example.
This example will make you understand the differentiate between Stock Market and MF.
Suppose I am Right now in Surat and wants to go to Mumbai for visit.
I have my own Car. Here will be two option for me.
First is to go drive my self and second one is to hire a driver.
Now if I drive my self, then I will go according to my direction and own destruction as well.
I will do my own Research.
On the other hand, If I am hiring a driver then all the destruction and which route to go and what is short cut, Long cut, etc. totally I will have to go with Driver’s Instruction.
That means I don’t need to worry about to reaching my destination.
Same as with Stock market and MF.
I will have to do My own Research and Development in investing in Stock market.
Perhaps, I have to take advice’s from experts and professionals.
As a result All of the work I have to done my self in stock market.
On the other hand In the case of MF, the burden of investment money and related work will be upon Their professionals and experts.
They will investigate the market condition and later on invest our money into the investment opportunity.
I hope you understand the difference between Stock Market and MF.
How mutual fund works ?
As I mentioned earlier that Mutual Fund is operating by some Experts and Well educated qualified Professionals.
So, Question is arise how Mutual Fund actual works ?
MF Collect money from investors like you & me.
Experts review the market Conditions and then take final decision where to move for invest money that they had collected from people.
They last decision is taken for investment by Experts and Professional.
MF can Invest in Equity , Debt and both as well.
After some period of time at the end the company declared it’s financial Result.
Company give dividend to those MF at the end of financial result in case of making profit by firm.
In return Mutual Fund give money to their investors with their proportion return.
The company takes charge or fees to pay out the salary of their experts and professionals from the total entire amount of investors.
This is known as Expense ratio.
So are you getting answer about Mutual Fund Sahi hai ?
In my view Mutual Fund is best option. If you talk about risk then let me know you risk is everywhere in our life.
If you are going via Stock Market then there may be a little portion of wrong decision can make your step wrong.
But in MF all are the steps towards investment taken by Experts and Professionals.
Types of mutual fund in India
Well, I hope you understand a little bit about Mutual Fund.
Mutual Fund is the company that helps you to figure out the top as well as best Investment opportunities for your money that you have invested in MF.
There is different type of mutual fund in India exist in the market.
Further I will discussed some of the major different types of mutual fund .
Equity Mutual Fund
As you probably know that this kind of Mutual Fund invest your invested money in equity i.e in stock market.
Mutual fund company monitors the up and down in the stock market . Based on the performance of company weather it is listed on BSE and NSE they invest in.
If you are looking in stock market to invest your saving you should go towards Equity MF.
Debt Mutual Fund
This kind of MF Invest your money in to Debt securities.
Debt contains Government Bonds, Corporate bonds, money market instruments, and corporate debt securities etc.
It has said that investing in Debt is much safer than investing in Equity.
Hybrid Mutual Fund
This kind of MF invest your money in both Equity as well as Debt.
As I mentioned earlier, the final decision will make by experts and professionals.
Return money will give to you based on your invested money. The company will charge some part of the expense ratio from your total investment.
Solution Oriented Mutual Fund
Solution Oriented MF may help you to achieve your Goal .
This kind of MF provides facilities to get your goals like child future planning for their marriage as well as Education and your retirement plan.
It will be one of the best MF when it comes to Retirement Planning.
For more Information Read this article.
Let me answer that for you in brief.
The Association of Mutual Funds in India (AMFI) is like a parent body of Indian Mutual Funds companies. It is mainly concerned with raising awareness about Mutual Funds amongst investors.
They see to it that Mutual Funds in India operate ethically and professionally, and maintain standards to protect and promote investor interests.
MF Collect money and Invest in Equity , Debt and other investment Opportunity.
There are a lot of MF companies that charge for service or payment fees to their experts from your total investment amount.
It has said that you will get more return in MF as it compares to the Saving account as well as Fixed Deposite.
Thank you for reading .
Let me know on which topic you would like to read more ?
Disclaimer: The content is for educational purposes only. We are not responsible for any Fault and fraud. It is highly recommending to invest and seek your advice from experts before taking any step in this direction.